Trump Account Calculator

How the projection works

Deposits are assumed at the start of each calendar year, starting in 2026 or the year of birth if later, and ending in the year the child turns 17. That last year closes the growth period, which ends on December 31 before the year of the 18th birthday. Each year's deposits grow at the return you enter, compounded annually. After 18 the calculator simply lets the balance keep growing with no new money, to show what leaving it alone does.

Worked example

A child born in 2026 gets the $1,000 federal deposit, and the family adds $1,000 a year for 18 years. At 7% a year, the account reaches about $39,750 when the growth period ends: $19,000 put in and $20,750 of growth. Left invested with no more deposits, it would be worth about $89,500 at 30 and about $956,000 at 65. With only the $1,000 federal deposit and nothing else, the balance at 18 is about $3,380.

The rules in 2026

• Who can have one: any child with a Social Security number who has not turned 18 by the end of the year the account is set up. The Treasury opens the first account.
• Opening versus activating: a parent or other authorized adult can elect to open an account on IRS Form 4547. Under temporary regulations published September 30, 2026, the Treasury can also set up an account automatically for an eligible child, with an election process that began on or about October 1, 2026. An account that was set up automatically still has to be activated before it can receive contributions or be managed, so check for activation details even if you did not file anything.
• $1,000 federal deposit: for US citizen children born from 2025 through 2028, paid once by the Treasury.
• Start date: no contributions of any kind before July 4, 2026.
• Yearly limit: $5,000 from family, the child, other individuals and employers combined. Employers can give up to $2,500 tax-free to the employee. Both amounts are fixed through 2027 and indexed afterwards.
• Not limited: the $1,000 pilot deposit and group deposits from states, local governments, tribes and 501(c)(3) charities.
• Investments: mutual funds or ETFs that track an index of mainly US companies, such as the S&P 500, with no leverage and fees of no more than 0.1% a year.
• No withdrawals during the growth period, apart from rollovers, excess contributions and death.
• No deduction: family contributions are not tax-deductible, which is why they come back tax-free later.

Tax when the money comes out

From January 1 of the year the child turns 18, the account follows the traditional IRA rules. Withdrawals are taxed as ordinary income except for the family contributions, which are the account's after-tax basis. Before 59 and a half, the taxable part also owes a 10% penalty unless an IRA exception applies, including qualified higher education costs and up to $10,000 for a first home. The child can also convert the account to a Roth IRA, paying tax on the taxable part in that year.

Trump account vs 529 vs custodial Roth IRA

A 529 plan is usually better for college: there is no federal yearly limit beyond gift-tax rules, and withdrawals for qualified education costs are tax-free. A custodial Roth IRA is the best long-term account of the three, with tax-free growth and withdrawals, but the child needs earned income from a job to contribute. A Trump account needs no earned income, gets the $1,000 federal deposit, and can receive employer money, but its earnings are taxed when withdrawn. For the long run, compare growth with the 401(k) calculator and conversion costs with the Roth conversion calculator.